Multiple Choice
The AS curve slopes upward because:
A) firms generally sell their products at preset prices.
B) relaxing the assumptions of the Keynesian model allows us to develop a more realistic model where firms no longer care about prices.
C) many firms raise their prices when aggregate demand has increased.
D) inflation is higher in goods-producing industries than service-producing industries.
Correct Answer:

Verified
Correct Answer:
Verified
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